Boston College, Carroll School of Management

Elon Musk: Ushering Humanity into the Future

“I could go and buy one of the islands in the Bahamas and turn it into my personal fiefdom, but I am much more interested in trying to build and create a new company.”

Why Elon Musk?

Arguably the greatest visionary of our time, Elon Musk is a real-life Iron Man (Tony Stark’s character was modeled after Musk!) whose unparalleled ambition is often misconstrued as a billionaire’s egotism and eccentricity. Elon Musk emerged a decade ago as a leader in the Silicon Valley scene, but had impossible goals that he would always be chasing. Musk has an unfathomable ability to locate a problem that needs solving and work tirelessly towards it, putting together a team of capable individuals and motivating them to formulate a practical solution.

Personally, I have idolized Elon Musk since reading Ashlee Vance’s biography (would absolutely recommend!) and I aspire to have the same positive impact on the world as Musk has and will continue to have. As a result, I apologize in advance for fangirling over Elon Musk in this blog post.

“I say something, and then it usually happens. Maybe not on schedule, but it usually happens.”

Musk sets a lofty example for what we can strive to become: envisioning a better future and making that dream a reality. Even though we will not be visiting Tesla, learning about Elon Musk and his various ventures can teach us a great amount about the evolving landscape of Silicon Valley and the rollercoaster path to success for startups. It is good to keep Elon Musk in mind as a pioneer of industry to emulate in terms of leadership and vision as we delve further into entrepreneurship and embark on our trip!

“When I was in college, I wanted to be involved in things that would change the world.”

Who is Elon Musk?

Emerging from a tough childhood in South Africa, Musk always stood out. At age 12, Musk created the video game Blastar. At age 14, he read a life-changing book, The Hitchhiker’s Guide to the Galaxy, which helped him realize that “a lot of times the question is harder than the answer.” Musk started asking the right questions and later graduated from Wharton with degrees in physics and economics. In 1995, Musk started Zip2, which later sold for $307 million. Using his share from the sale, Musk started X.com, which later became PayPal and sold for $1.5 billion. Like our friend Steve Jobs, Musk was forced out of CEO to CTO at Zip2, and was ousted as CEO again from PayPal.

Musk then decided to dabble in rockets and electric cars, as one does, and literally taught himself rocket science. He then started SpaceX to build reusable rockets to Mars, invested in Tesla to create electric cars, and became the first investor in his cousins’ company, SolarCity, to popularize renewable solar energy.

“My proceeds from PayPal were $180M. I put $100M in SpaceX, $70M in Tesla, and $10M in SolarCity. I had to borrow money for rent.”

During the Great Recession, SpaceX and Tesla verged on bankruptcy, but started their explosive growth following the narrow escape. Musk has since published a design for the Hyperloop high-speed rail, built the Tesla Gigafactory, unveiled the Tesla Powerwall, successfully landed a rocket, and started The Boring Company to bore tunnels in California… to name a few of his many accomplishments.

This blog post will focus on Tesla, SpaceX, and The Boring Company in particular. Since the inception of Zip2, Elon Musk has remained one step ahead of the competition, pioneering every industry imaginable and ushering humanity into the future.

“I don’t create companies for the sake of creating companies, but to get things done.”

Tesla

Tesla is Elon Musk’s most renowned startup. Known for hemorrhaging cash and missing production deadlines, Tesla burned through $1.4 billion in cash in the third quarter of 2017. That said, Tesla singlehandedly made electric cars sexy, shifting the perception of sustainable transportation from a Toyota Prius to the Model S and spearheading the electric car race.

Elon Musk saw the future demand for electric cars and capitalized on the unrealized potential. Now, electric cars appear to be the future of transportation. California Governor Jerry Brown recently called for five million zero-emission cars by 2030, securing a future market for Tesla and indicating the evolving automobile industry that Musk anticipated.

However, Tesla is notorious for missing production deadlines and setting expectations impossibly high. Tesla aimed to produce 5,000 Model 3s per week, but only sold 1,550 in the final three months of 2017. Tesla is entering into the mass-production market, aiming to produce 500,000 cars per year, but has been plagued by production bottlenecks and issues with scaling production to meet demand. A capital injection or acquisition could be in its future, as John Reim’s blog postexamines.

Despite the financial woes, Tesla continues to pioneer the electric car industry. Deliveries of the Model S and Model X rose 28% last quarter and Tesla sold about 76,000 total vehicles last year. Tesla also introduced the all-electric semitrailer truck (and already has hundreds of preorders), a $200,000 Roadster super car, and plans for a pickup truck. Tesla has even reduced the cost of driving cross-country to just $100!

In doing so, Musk and Tesla have generated astronomical value. Tesla’s market cap per vehicle sold in 2016 was a whopping $667,000. In comparison, GM’s was a meager $5,000.

Elon Musk has stepped into the spotlight by leading the electric car company to its $60 billion valuation. Musk and Tesla recently reached a new contract revolving around a 10-year grant of stock options split into 12 tranches, worth up to $55.8 billion if fully vested (assuming Tesla can reach a market cap of $650 billion – equivalent to Amazon today)! One expert remarked, “Mr. Musk is saying, ‘I want to set an audacious goal, and then if I achieve it, then pay me audaciously’ […] He is in some ways capturing the spirit of Silicon Valley.”

SpaceX

Elon Musk founded SpaceX in 2002 to revolutionize space exploration technology. Today, SpaceX designs, manufactures, and launches advanced rockets and spacecraft. SpaceX has made history countless times since 2008, pioneering the private-sector race in space exploration.

A majestic picture of the SpaceX Falcon 9 rocket landing for the second time, after a relaunch!

The Falcon 1 was the first privately developed liquid fuel rocket to reach orbit and to deliver a commercial satellite. The Dragon then became the first to reenter from orbit and to visit the space station. Most notably, the Falcon 9 successfully launched and landed… twice!

Now valued at $21 billion, SpaceX is at the forefront of space exploration. SpaceX will now be launching the Falcon Heavy on February 6th, 2018. The Falcon Heavy will be the most powerful rocket ever, setting the stage for the BFR – an absolute behemoth relative to past spacecraft.

The Boring Company and Hyperloop

As mentioned above, Elon Musk published a research paper in 2013 describing how the “Hyperloop” can revolutionize modern transportation. According to Musk, solar-powered passenger pods could hypothetically travel up to 700 mph in the $7.5 billion system. Musk has since improved on his initial designs, even forming the Boring Company to build underground transportation tunnels and a New York to Washington DC Hyperloop. Most importantly, Musk published the Hyperloop paper as a blueprint for a futuristic technology, inspiring startups and a generation of college students to ardently pursue his vision.

Elon Musk’s initial concept for the Hyperloop

Elon Musk started the Boring Company with the goal of reforming Los Angeles transportation infrastructure by boring underground tunnels. On its website, Boring says “To solve the problem of soul-destroying traffic, roads must go 3D, which means either flying cars or tunnels. Unlike flying cars, tunnels are weatherproof, out of sight and won’t fall on your head.”

The Boring Company’s 6.5-mile proposal in red, the entire long-term plan in blue

Boring recently proposed a 6.5-mile underground tunnel from Hawthorne (SpaceX HQ) to West Los Angeles. The tunnel would contain a high-speed underground “skate” system traveling up to 150 mph. In October, Boring also secured a utility permit to begin tunneling beneath a 10-mile stretch near Washington DC. Albeit a tiny first step, it demonstrates Musk’s commitment to his vision and the progress being made to bring the Hyperloop to life. The technology obviously remains years away, but Elon Musk has singlehandedly introduced a new dimension to transportation (quite literally).

Long-Term Vision: Envision a World!

Elon Musk has shown us how to find a problem, envision a solution, and offer that solution to the market. In my opinion, the greatest potential for Musk’s empire could lie in Tesla Energy. Following the acquisition of SolarCity, Tesla now offers the Solar Roof in combination with the Powerwall. In a short time, Tesla will hopefully be able to further reduce the cost and incentivize all homes in the US to purchase both, significantly reducing the energy footprint of the United States and opening a massive new market to Tesla. By constructing and developing these fantastical startups, Elon Musk is paving the way for sustainable energy, intergalactic transportation, and AI.

“I would like to die on Mars. Just not on impact.”

We are inching closer towards Elon Musk’s vision of the future. According to Musk, we will reach it in our lifetime! Imagine this… You open your front door and take a step outside onto the reddish dirt of Mars. You look up and see a Tesla Solar Roof connected to your Tesla Powerwall, which powers your entire house. Then, you hop into your Tesla Roadster and, as it drives you to the underground Hyperloop, you see yet another SpaceX BFR land, carrying new settlers.

It may sound out of this world (pun intended!), but Elon Musk and his many startups are working tirelessly to make it a reality. All of his ventures are concerned with a mission greater than Elon himself: “saving humanity”. You can thank Elon Musk for saving humanity and for pushing us towards a better future!

“When something is important enough, you do it even if the odds are not in your favor.”

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11 thoughts on “Elon Musk: Ushering Humanity into the Future”

Great blog post! I share a similar admiration for Elon Musk, and actually bought the book you recommended a few weeks ago! I feel like many people often take his accomplishments for granted. The fact that one man was the driving force behind PayPal, Tesla, and SpaceX is honestly mind blowing. My favorite Elon tidbit is that he believes we’re living in a simulation, which sounds absolutely ridiculous, but you’d be surprised at how quickly he can make you second guess yourself if you watch videos of him talking about it.

I love that tidbit! I was very caught off guard when I first read that Elon believed we’re in a simulation, but like you said he can really make you rethink it. If you haven’t seen it already, I’d highly recommend watching the “White Christmas” episode of Netflix’s Black Mirror (Season 2, Episode 4). It made me relate to Elon’s point of view and seriously consider the possibility of living in a simulation…

Hey Rohan, great blog post! Elon Musk is an extremely fascinating entrepreneur and I enjoyed reading more about him. I came across him this past week as I have been doing research for my blog post and presentation on LinkedIn. Elon Musk came up as a member of the “PayPal Mafia”, which Reid Hoffman the co-founder of LinkedIn is also a part of. As you know, they were influential and members of the community from the beginning. It is so interesting to see the interconnectivity between Silicon Valley and many of the tech startups that have grown immensely over the years.

Thanks for the mention! Elon is truly an innovator, and one of the greatest visionaries of our time. Bold prediction on Tesla having a larger market cap than Apple, though. I love how he is willing to fail, and take huge risks. However, I don’t know if he is the best day-to-day manager of the operations. I work that he simply is trying to tackle everything all at once, instead of truly focusing on any one issue. He is also a little quirky with his meticulous schedule and conspiracy-like simulation theory, but it seems all the people that are the best in their fields are slightly abnormal. I can’t wait to see how Tesla shapes our futures!

Rohan, I really enjoyed your post! I never knew that “The Hitchhiker’s Guide to the Galaxy” was so instrumental in Musk’s life. I also read that book when I was younger! Musk’s ambition and desire to change the world is something I admire. From your post, I can tell how he’s a “just do it” kind of guy. I think it’s interesting how he recently said he won’t be taking a salary unless he achieves his expansion and development goals for Tesla. I’m excited to see what Musk accomplishes moving forward!

This is such a thorough analysis of where Musk has been and where he is going. More specifically, I thought your use of quotes was powerful and effective in portraying Musk’s true character. Reading some of the things he says makes me eager to know what the future of technology holds. In the meantime, I am excited to see the Falcon Heavy launch next week!

Great post, Rohan! I definitely agree that Musk has many virtues and ambitions that are projected amongst the people we will be meeting in Silicon Valley. I love the quote you used – “A lot of times, the question is harder than the answer.” With a large pool of talent concentrated in Silicon Valley, it must be difficult at times to ask the right questions in a new way that will lead to innovation. Also, I love the time prediction graphic at the end, it’s interesting that just in class last week we discussed cars without steering wheels, yet the graphic predicts that won’t be until 2037! Musk’s passion for what is does is something I strive for.

Great post. I didn’t know about the influence of the HItchhikers Guide to the Galaxy, but it’s a great insight. I think Picasso once said a similar thing about computers: “But they are useless. They can only give you answers.”

It takes an incredible visionary to be in charge of companies whose portfolio of competitors are Mercedes-Benz, Virgin Galatic, and moles. Similar to Jack Dorsey of Square/Twitter, I go back and forth on this question: with someone who’s so visionary and in charge of public companies, does he have a duty to his stockholders to only be in charge of 1 company and focus his energy there or is his duty to the consumers to create the best products possible? Would love to hear anyone’s thoughts on this question.

What a thought-provoking post. I would love to see inside Elon Musk’s mind, but then again, it would be like drinking from the firehose of his endless stream of technological philosophy. I like that you pointed out that while all his ideas seem far-fetched, they are all connected in his out-of-this-world theory.

The one thought I keep coming back to is a Wall-E comparison. Colonizing Mars, while it would be a tremendous marker in human history, seems like a way to escape this planet. Yet, many of Musk’s inventions are working to make life on this planet more sustainable. I keep thinking about whether colonizing Mars and preserving Earth are really at odds. For example, maybe developing sustainable technology here would allow the future Mars society to start fresh and sustainably, rather than dealing with centuries of entrenched destruction on Earth. At the same time, isn’t that just an escape method that would avoid trying to ameliorate our current problems?